Moneycontrol
Last Updated : Jan 18, 2018 12:17 PM IST | Source: CNBC-TV18

Bharti Airtel Q3 earnings to remain subdued, profit may fall 21%

Analysts expect Bharti's India wireless revenue to decline 8 percent QoQ largely due to the 57 percent interconnect usage charge rate.

Telecom operator Bharti Airtel is expected to report weak set of earnings for October-December quarter due to continued pricing war.

Analysts expect Bharti's India wireless revenue to decline 8 percent QoQ largely due to the 57 percent interconnect usage charge rate and expect APRU (average revenue per user) downtrend to continue, as incumbents extend freebies to a wider subscriber base to arrest churn towards Reliance Jio.

According to them, Africa Business is expected to remain insulated from intense competition in the market and the launch of additional unlimited plans is likely to impact India wireless EBITDA.

Airtel's consolidated profit is seen falling 21 percent sequentially to Rs 271 crore and revenue may decline 4 percent to Rs 20,809 crore for the quarter ended December 2017, according to average of estimates of analysts polled by CNBC-TV18.

EBITDA (earnings before interest, tax, depreciation and amortisation) is likely to slip 5 percent quarter-on-quarter to Rs 7,519 crore, but margin may expand 90 basis points to 36.1 percent in Q3.

Bharti's Africa business EBITDA is likely to remain steady, with improvement in margin. Its Africa business may see three key moving levers - adverse currency fluctuations, merger of Ghana operations in Q3FY18, and organic growth in Africa.

Key performance indicators

ARPU may fall 12 percent sequentially to Rs 127 while wireless traffic may increase 2.4 percent to 448 billion minutes and data traffic may rise 17 percent to 917 billion MB.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
First Published on Jan 18, 2018 10:05 am
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